The growth of the vegan category - Au v UK

The vegan food market in Australia and the UK has shown substantial growth over recent years, though Australia has experienced slightly faster expansion. In Australia, plant-based products are increasingly popular due to rising health and environmental awareness, with the vegan food sector seeing significant growth in dairy alternatives, meat substitutes, and other plant-based offerings. The market has experienced steady expansion, driven largely by increased accessibility in mainstream grocery outlets and a growing flexitarian population.

In comparison, the UK’s vegan market has also grown robustly, with double-digit increases and significant contributions from both vegan and flexitarian consumers. British retailers have expanded vegan sections, making plant-based products more accessible across the nation. However, the growth rate in Australia appears to be outpacing the UK due to an increasing domestic demand for plant-based alternatives amid heightened health and environmental concerns  .

Both markets are expected to continue expanding, with global players investing in product innovation and broader distribution to meet rising demand for vegan alternatives.

In Australia, the vegan market is rapidly expanding, with several key sectors leading growth due to rising consumer demand for sustainable and health-oriented options:

1. Plant-Based Meat Alternatives:

This is one of the most dynamic sectors in Australia’s vegan market. Alternatives to traditional meat, like plant-based burgers, sausages, and mince, are popular among both vegans and flexitarians. Domestic companies like v2food and international brands have captured significant market share by innovating to improve taste, texture, and nutritional profile, appealing to Australians who want to reduce meat consumption without sacrificing flavour.

2. Dairy Alternatives:

Milk alternatives (e.g., almond, oat, and soy milk) lead the dairy-free market in Australia, with high growth rates driven by health and environmental considerations. Other products like plant-based yogurt, cheese, and ice cream are also growing as consumers diversify beyond milk. Major grocery retailers have expanded their vegan dairy sections, making these products more accessible.

3. Functional Vegan Foods:

Australian consumers are increasingly interested in functional vegan products that offer added health benefits. This category includes foods enhanced with probiotics, vitamins, and adaptogens. Many functional snacks and beverages align with Australian health trends, and brands are tapping into this demand with items like protein-enriched bars and drinks made from nutrient-dense ingredients .

4. Seafood Alternatives:

Although still emerging, vegan seafood products like plant-based fish fillets and prawns are beginning to gain traction in Australia, driven by concerns over sustainability and environmental impact. While smaller than the meat and dairy-free sectors, this area is expected to grow as more Australians become aware of the environmental benefits .

5. Vegan Confectionery and Snacks:

Demand for vegan snacks, including chocolates, chips, and sweets, has also risen, with consumers seeking dairy-free and cruelty-free indulgences. Australian brands like Loving Earth are contributing to this growth by offering vegan chocolates made from organic and sustainably sourced ingredients.

Overall, the vegan market in Australia is growing quickly, propelled by both health-focused consumers and environmental motivations. With a strong foundation of both domestic and international brands, these sectors are expected to continue expanding as vegan options become increasingly mainstream in Australia  .